Horrible News For Goldbugs - Paulson Is Bullish On Gold Again; Next - Roubini?

Tyler Durden's picture


We wish we had good news, but we are not going to lie: This is the worst possible news for any gold bull out there.

From Bloomberg:

Gold traders are getting more bullish after billionaire hedge-fund manager John Paulson told investors it’s time to buy the metal as protection against inflation caused by government spending.


“By the time inflation becomes evident, gold will probably have moved, which implies that now is the time to build a position in gold,” New-York based Paulson said in a letter to investors obtained by Bloomberg. Armel Leslie, a spokesman for Paulson, declined to comment.


The 56-year-old manager’s SPDR Gold Trust holdings fell 15 percent in the fourth quarter as his $23 billion hedge fund company had its worst-ever year. His Advantage Plus Fund lost 51 percent in 2011, and the firm said in a third-quarter letter that financial services companies were the “primary drag.” Paulson became a billionaire in 2007 by betting against the U.S. subprime mortgage market. Gold rose 10 percent last year in New York trading, an 11th consecutive annual gain.

And so the Paulson overhang is back. Couldn't Paulson just go ahead and buy Bank of America or some other worthless biohazard again?All that remains is for Roubini to say he prefers gold over spam (and always has, he was merely "misunderstood") and the crash will be imminent.

Or perhaps we will learn following the next $1000 up move in gold that Gartman will have been long gold in Vietnamese Dong.

Well, at least cheap entry points will be available.

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Fri, 02/17/2012 - 16:57 | 2171293 css1971
css1971's picture

Just set my stops.

Fri, 02/17/2012 - 16:57 | 2171295 antidisestablis...
antidisestablishmentarianismishness's picture

I'm pretty sure the flock will be able to put a positive spin on this.

Fri, 02/17/2012 - 20:42 | 2171956 tekhneek
tekhneek's picture

I like the part where they show you the 1 hour chart and scream bubble after the fixing.

Fri, 02/17/2012 - 16:57 | 2171296 valvehume
valvehume's picture

go for arts 

Fri, 02/17/2012 - 16:58 | 2171297 fonzannoon
fonzannoon's picture

Look how complacent this market is. Greece..who gives a shit. Oil....who gives a shit....

I thought Paulson only sold his GLD so he could buy physical. I guess that is not true?

Fri, 02/17/2012 - 16:58 | 2171303 Dermasolarapate...
Dermasolarapaterraphatrima's picture


Fri, 02/17/2012 - 23:27 | 2172251 StychoKiller
StychoKiller's picture

Someone got hungry for Au-crunchies! :>D

Fri, 02/17/2012 - 16:59 | 2171306 ekm
ekm's picture

Seeing Paulson's failures, whoever behaves as if he or she knows what they are doing, including some ass braggers on this blogg, should be ashamed of themselves.

Suggestion: Go for a colonoscopy.

Fri, 02/17/2012 - 17:00 | 2171307 i_fly_me
i_fly_me's picture

This is GREAT news!  My acquisition rate is headed up.

Fri, 02/17/2012 - 17:00 | 2171308 kindape
kindape's picture

i dont think he ever stopped being bulllish. he just was thinking 2 steps ahead and market was at 1 step ahead and he had margin calls

Fri, 02/17/2012 - 17:00 | 2171310 Bastiat009
Bastiat009's picture

Does that mean that everything I have been reading here was wrong and the only reason why I should buy gold was that Paulson was selling his? I thought that gold was good for the exact reason explained by Paulson today. 

Fri, 02/17/2012 - 18:14 | 2171601 spankthebernank
spankthebernank's picture

Tongue and cheek my man. When asset prices roll over gold will go with it, for a time anyway. Maybe he's calling the top in the equity market?

Fri, 02/17/2012 - 17:01 | 2171311 Scribbles
Scribbles's picture

CRAP! I'm selling it all for Apple stock.

Fri, 02/17/2012 - 19:05 | 2171746 GernB
GernB's picture

Only the best investors waited for it to get over 500 before buying because that's like a milestone that proves it's going up.

Fri, 02/17/2012 - 17:01 | 2171316 Black Forest
Black Forest's picture

Every dog has its day.

Fri, 02/17/2012 - 17:01 | 2171317 Strelok
Strelok's picture

This might be bad news for gold, in the short term anyway.  When everybody is becomes bullish on gold, or anything else, it's probably time to step back and reasses your next moves. 

Either way, I'm long silver since I bought all of mine at $12-15/oz back in the '07-'08 era.  I'm too poor for gold. 

Fri, 02/17/2012 - 17:01 | 2171320 The Swedish Chef
The Swedish Chef's picture

I wish I bought more back when... But I guess we can expect a correction now, can´t we?

Fri, 02/17/2012 - 17:06 | 2171343 SheepDog-One
SheepDog-One's picture

Sure! Expect a correction, in anything but stocks from here on out.

Fri, 02/17/2012 - 17:02 | 2171323 resurger
resurger's picture

Is it ok to say

"Fuck Gold & Silver"


Fri, 02/17/2012 - 17:05 | 2171335 blu
blu's picture

Not around here. You'll have down-votes before you can say "holy phizzical Batman!"

Fri, 02/17/2012 - 17:09 | 2171360 resurger
resurger's picture

just for this post Blu :)

Fri, 02/17/2012 - 17:12 | 2171372 AgShaman
AgShaman's picture

Yes....but it's a bit like wearing and eye-patch on the public rail system...

You may wake up in a road-side ditch.

Don't wake up in a road-side ditch....keep some gold and silver in your portfolio

Fri, 02/17/2012 - 17:22 | 2171413 francis_sawyer
francis_sawyer's picture

don't have a grandchild with a dog collar...

Fri, 02/17/2012 - 17:32 | 2171456 AgShaman
AgShaman's picture

double good!

Sat, 02/18/2012 - 12:10 | 2172851 Sunshine n Lollipops
Sunshine n Lollipops's picture

Q: Is it ok to say "Fuck Gold & Silver"

A: As long as you follow proper Fight Club etiquette and say "Fuck Gold & Silver," bitchez.



Fri, 02/17/2012 - 17:03 | 2171325 Dr. Engali
Dr. Engali's picture

Shit! Fuck!

Fri, 02/17/2012 - 17:08 | 2171351 AgShaman
AgShaman's picture

Gold induced Tourette's Syndrome?

Fri, 02/17/2012 - 17:04 | 2171329 blu
blu's picture

Well then I am off to the sushi bar for a ceremonial dram of sake before committing ritual sepuku in the center of the nearest intersection.

Just kidding. I'm going on a bike ride.

Fri, 02/17/2012 - 17:23 | 2171416 francis_sawyer
francis_sawyer's picture

don't drink & ride...

Fri, 02/17/2012 - 20:53 | 2171970 donsluck
donsluck's picture

Go ahead, you have 0.0 liability.

Fri, 02/17/2012 - 17:04 | 2171330 youngman
youngman's picture

He will buy his gold...but his investments in Greeceor whatever  will fall flat...so he will have to sell again to cover his loses

Fri, 02/17/2012 - 17:05 | 2171334 AgShaman
AgShaman's picture

"Gold is a bubble....and the bull market in gold is over"  -Larry Kudlow

Fri, 02/17/2012 - 23:33 | 2172263 francis_sawyer
francis_sawyer's picture

He never really did quite understand the true meaning of a "GOLD-i-locks" economy, did he?

Fri, 02/17/2012 - 17:06 | 2171336 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Hey, Paulson merely got a brainwave. Every idiot has his good moments.

Fri, 02/17/2012 - 19:30 | 2171809 WmMcK
WmMcK's picture

Even a blind squirrel catches a nut sometimes.

Fri, 02/17/2012 - 20:43 | 2171958 Au Shucks
Au Shucks's picture

only 'cause they're easier for the cats to catch

Fri, 02/17/2012 - 17:05 | 2171338 Motley Fool
Motley Fool's picture

Correction ahead or perhaps demise of the paper market. Things do seem to be progressing nicely.

Fri, 02/17/2012 - 17:09 | 2171356 Eisenhorn
Eisenhorn's picture

This COULD be the one time he is right.

After all, it means even Paulson is now giving up on the Ponzi.  And my guess is he knows a person or two with some insight into how close we might be.....

Fri, 02/17/2012 - 17:09 | 2171359 Gunther
Gunther's picture

I will get scared when he buys real bullion and takes posession of the metal.

Fri, 02/17/2012 - 17:20 | 2171411 tobinajwels
tobinajwels's picture

How do we know that he has not bought physical?

Fri, 02/17/2012 - 17:31 | 2171453 Gunther
Gunther's picture

"The 56-year-old manager’s SPDR Gold Trust holdings..."
That does not sound like bullon to me.

Fri, 02/17/2012 - 23:31 | 2172261 StychoKiller
Fri, 02/17/2012 - 17:14 | 2171383 Comay Mierda
Comay Mierda's picture

gold has had a nice rally but its do for a retracement.  let it come down to $1600-$1650 range and buy hand over fist

Fri, 02/17/2012 - 17:57 | 2171550 saulysw
saulysw's picture

You may be right, or wrong - time will tell. By the way, the word is "due", not "do".

Fri, 02/17/2012 - 18:25 | 2171645 DosZap
DosZap's picture

John NADLER say's Au is likely heading abck down to 1250.00 1400.00 range.

So, We stay in a holding pattern awaiting the EU, if it falls apart, he may be correct.................on the fiat price.

Good luck buying any at that price.

Fri, 02/17/2012 - 18:48 | 2171701 agNau
agNau's picture

One component of double Doo.

*Spelling Police & DHS approved.

Fri, 02/17/2012 - 17:17 | 2171390 SunnyDD
SunnyDD's picture
Hehe, That is it!

I.m long on food now.


Fri, 02/17/2012 - 17:30 | 2171452 Black Forest
Black Forest's picture

Me too. Plus PM.

Fri, 02/17/2012 - 18:25 | 2171644 HiHoAg
HiHoAg's picture

....and bullets.

They always forget the bullets.

Fri, 02/17/2012 - 17:18 | 2171395 Dead Canary
Dead Canary's picture

Please Tyler, the word "Goldbug" is derogatory. You should know better.

How about..... Gold Stallions!  Yea, that's better.

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